The Global demand for biofuels is increasing steadily and IEA projections see second-generation biofuels becoming an increasingly important low-carbon fuel in the transport sector within the next two decades. Research-and-development projects so far have mainly been established in developed countries and it is yet not fully understood which role the new technologies could play in countries outside the OECD.

This study aims to identify opportunities and constraints related to the potential future production of second-generation biofuels in major economies and developing countries, and to examine under which conditions the new fuels could be produced sustainably in these countries. The paper identifies global drivers for second-generation biofuel development, discusses projections on biomass potentials and assesses the potential of agricultural and forestry residues for the sustainable production of lignocellulosic biofuels. The analysis is based on findings from eight countries, which have been studied in detail to assess the framework for the implementation of a second-generation biofuel industry under different economic and geographical conditions: Mexico, four major non-OECD economies (Brazil, China, India and South Africa),as well as three developing countries in Africa and Southeast Asia (Cameroon, Tanzania and Thailand).